Ministry 'holding up WiMax'

Woosh Wireless says it has international funding from major technology players to build a high-speed WiMax wireless broadband network.

But the internet and phone services provider says its plans are in limbo while the Ministry of Economic Development ponders the future of the radio spectrum it needs to deploy its WiMax service.

"They're all saying this [WiMax] is the biggest game in town in the States. And we're all ready to go [here]," Woosh chairman Rod Inglis said. "We've got funders lined up, we've got the spectrum, we're ready to go, and the only thing getting in our way is the Ministry of Economic Development (MED), which seems rather ironic."

Globally, WiMax is attracting huge interest from technology and media firms keen to exploit its potential as a fast, comparatively long-range wireless broadband delivery alternative.

Chip maker Intel and cellphone company Motorola have invested US$900 million ($1.44 billion) in US WiMax network company Clearwire. Rupert Murdoch's DirecTV is reportedly also eying Clearwire.

Here, Woosh has spent several million dollars acquiring management and usage rights to spectrum in the WiMax-compatible 2.3GHz band, but says it can't secure the funding to build its network because of an MED proposal to carve up the band when management rights come up for renewal in 2010.

In a discussion paper this month the MED noted Cabinet had decided not to offer automatic renewal to current 2.3GHz rights holders because use is not being made of the band, nor is it divided into sections of bandwidth suitable for WiMax deployment.

The ministry proposes dividing the 2.3GHz band into three lots, two of which would be auctioned for national wireless broadband use with 20-year management rights and a third "available to local and regional wireless broadband providers, and other users to be negotiated with the ministry".

Inglis says Woosh will lobby strongly against the proposal because it will stall WiMax until after the existing rights expire in 2010.

"In other major markets people have allowed spectrum to be consolidated so that networks can be built offering infrastructure competition, and that's all we want to do."

He would not confirm reports Intel was a potential Woosh investor saying: "Under NDAs (non-disclosure agreements) ... I can't say exactly who it is we're talking to, but we have got some of the largest technology vendors in the world wanting to do deals with us."

He said those "major investors" were ready to plough money into the WiMax project once Woosh had resolved the spectrum rights issue.

"We think the Government has shown that they can be quite positive and proactive in encouraging competition and encouraging investment and that's all we want to do," Inglis said.

"We think the [Government's local loop] unbundling announcement is a good one for us and we'll be announcing plans in the next few days that demonstrate that we'll be taking advantage of that."


What is WiMax?

* Acronym for World Interoperability for Microwave Access - a wireless broadband standard.

* Sometimes described as "WiFi on steroids" because it can deliver faster broadband over a range of up to 50km.

* The 2.3GHz spectrum band is an ideal WiMax platform.

* Woosh has been stockpiling 2.3GHz bandwidth and says it has secured funding to launch a WiMax service.

* But the future of Woosh's 2.3GHz access rights is uncertain under a Ministry of Economic Development proposal to rejig spectrum allocations.